PTC Inc. stock research
FY2025 Q4
PTC (PTC) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose slightly. Gross margin improved versus both periods, reflecting a higher proportion of gross profit relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose slightly. Gross margin improved versus both periods, reflecting a higher proportion of gross profit relative to revenue.
- The strongest observable margin driver is the increase in gross profit outpacing the rise in revenue, which lifted gross margin. This is supported by cost of revenue growing at a slower rate than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were higher, while cost of revenue was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.9%
Gross profit
$776.9M
Revenue
$893.8M
Cost of revenue
$116.9M
Quarter-over-quarter change
+4.0 pts
Year-over-year change
+4.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $565.1M | $453.3M | $111.8M | 80.2% |
| Mar 31, 2025 | $636.4M | $530.1M | $106.3M | 83.3% |
| Jun 30, 2025 | $643.9M | $533.9M | $110.0M | 82.9% |
| Sep 30, 2025 | $893.8M | $776.9M | $116.9M | 86.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+4.0 pts
Year-over-year change
Sep 30, 2024
+4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit outpacing the rise in revenue, which lifted gross margin. This is supported by cost of revenue growing at a slower rate than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were higher, while cost of revenue was slightly higher.
Monitor the trend in cost of revenue relative to revenue, as its slower growth supported margin expansion this quarter.